Panel on UMPP bidding submits first part of report
The expert committee constituted to review the bidding norms for ultra mega power projects (UMPPs) has submitted the first part of the three-part report to the power ministry, with recommendation for changes to be made.
The government had tasked the committee to suggest modification in the standard bidding document, following the withdrawal of all the qualified private developers from the final round of the bidding process of the proposed 4,000 MW UMPPs in Tamil Nadu and Odisha projects, which had cited difficulty in securing bank finance due to flaws in the bidding norms.
The first tranche of the report dealing with UMPPs based on captive coal mines was submitted to the ministry earlier this month. The other two reports would deal with UMPPs based on imported coal, and Case II plants other than UMPPs, respectively.
Under Case II, the government assumes the risks of land acquisition, clearances, fuel and other power plant requirement through a special purpose vehicle (SPV), before transferring it to the designated developer. Risk mitigation for developers allows the tariffs to be kept low.